DB scheme funding hits new highs in July – Broadstone

The fully hedged scheme’s funding rose from 70.3% at the end of June to 70.9% by the end of July, with the deficit dropping to its lowest point since 2022. 
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Broadstone’s Sirius Index showed improved funding for defined benefit (DB) pension schemes in July 2025, with better returns from growth assets. 

The fully hedged scheme’s funding rose from 70.3% at the end of June to 70.9% by the end of July, with the deficit dropping to its lowest point since 2022. 

The 50% hedged scheme saw a bigger improvement, going from 106.2% to 107.2%, and reaching a record surplus, which put a buy-out in sight.

Chris Rice, head of trustee services at Broadstone, said: “Defined Benefit pension schemes have continued to progress their funding positively during July in the face of global market uncertainty.

“With bulk annuity insurers PIC and Just changing ownership during the month, combined with last month’s potential resolution to Section 37 issues and further funding improvements, more schemes will now be thinking again about the suitability of a de-risking transaction.

“Conversely, the continued improvement and resilience in defined benefit scheme funding, added to the recent consultation about surplus use, is causing many schemes to consider all future end game options.”

Marvin Onumonu

Marvin Onumonu is a Reporter for Workplace Journal and The Intermediary

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